swombat.com

daily articles for founders

Don't get complacent when you take off  

It sounds like a nice problem to have on the face of it, but screwing up your business after things finally start going your way would be a tough pill to swallow. Charlie O'Donbell advises entrepreneurs not to take their time with building a great team when the business picks up:

The right lead investor and the right amount of cushion in a raise can help with the best defense against scaling disaster—hiring. If you’re a company, perhaps less than a year old, and you’re entering the first phases of strong growth, you’re in an interesting position in the talent market. There’s still a lot of risk left in your company. Hell, you barely even look like a company—your processes are mostly duct tape and a little gum at best, and you’re bursting out of your office space. (...) This isn’t necessarily the kind of company that easily wins over A+ tier talent without a little help. So what happens? You grab who you can, because you’re desperate for bodies to fill roles and you make due—only to realize that six months from now, things aren’t really any easier.

(...)

The right partner goes to bat for you during the recruiting process—helps you identify and court the hires that you look back at as key to your success. They can also help you become a better manager and get the most out of your people. (...) They can do this because they’ve done it before—and if you’re a first time entrepreneur, their experience is invaluable.

Then again, be sure to understand what kind of business you're building, and whether your type of business does require this type of support, before taking this advice.

More from the library:
More about side projects and creativity
Startup or big company after university?
Old and new ideas
Google Analytics Alternative